In 2017, we have witnessed accounting making further progress towards cloud resulting in automation and integration of platforms. It helped in reduction of day to day paperwork to give accountants time to focus on basic other stuff which helps in organization growth. In the year 2018, we will be seeing accounting taking a more in-depth route to its journey in 2017.
Better Visualization of Financial Data:
In 2017, we have seen many small and medium organizations managing their financial data in excel sheets and hard copies, which made their accounting management a complicated and tedious process. It was insane to look at the way the economic data is presented to the management to make some business-critical decisions. Towards the second half of the year 2017, we have noticed many companies shift towards technology to manage their accounting.
With many organizations adopting technology to manage their accounting, financial data now can be sliced, diced and presented better for easy understanding. Visualization of Financial Data in graphs and charts on dashboards makes it easy for the senior management to monitor the accounting process which helps in easy decision making.
With the implementation of Technology, the Physical paper is now only about 15% of the accounting system. These physical documents are also digitized with the help of OCR technology and are stored in the respective category in the accounting management system implemented. Last year accounting digitization of previous years physical documentation was in full swing, and it will be a continued trend this year to achieve 100% paperless accounting process in an organization. At this point, there are very few companies that have 100% paperless accounting system in practice.
Do It Yourself Accounting (DIY Accounting):
We at Cogent have observed in 2017 that DIY accounting is on the rise in the organizations that have a revenue under $100000 per annum. DIY accounting gives a financial grip to the owner that enables him to use his finances wisely as he is aware where his dollar went. The other advantages of DIY accounting are your organization financial data remains in the house which is very much critical for IP based organizations to survive.
However, maintaining compliances, auditing and taxation will need a specialist on the job. In 2018, we expect to see a rise of DIY accounting in start-ups leveraging technology which after a certain period of growth will be handed over to a specialist.
Last year, we saw that trends like BREXIT made an impact on accounting process and procedures for companies who have been doing business in the region. Accounting professionals will play a key role in implementing the necessary changes due to globalization. In 2018, we expect a backlash against globalization which provides opportunities for accounting professionals to work on the differences in financial, taxation and cultural systems across the globe. The accounting professionals must gear up to keep themselves on the ground with the impact of globalization.
Diversification of Skill Sets:
With Cloud and Automation stepping into accounting, there has been an increased demand in diversified skill sets related to accounting such as accounting professionals should also be able to play the role of a business analyst or data scientist. In 2018, accounting professionals with analytics edge will be more on demand as per our understanding of the markets we serve. Other than analytics edge, other skills like communication, problem-solving, and flexibility will be in need in addition to the necessary finance and accounting skills.
Using Automated Accounting Software:
Automation is a significant emerging trend in the year 2018 and accounting sector too is moving towards the same. While it is beneficial to let automated accounting programs do the tasks on your behalf, there still might be cases where you may need expert human assistance to perform accounting tasks. This is where accounting services outsourcing company comes into play. They can help achieve the bookkeeping and accounting tasks that require human expertise.
As we all know, behind every good business is a great accountant, and it is a language of business. We at Cogent Professionals provide the best solution for all your accounting needs. A professional hand is always welcome when working on your accounting needs.